Analyst Claims iPhone 5 To Become A Market Leader In 2013

According to J.P. Morgan analyst Mark Moskowitz, the
hardware augmentations and extended Apple services will help thenext-generation iPhone lead the smartphone market next year. The iPhone 5,
which will debut this October, is believed to be the top dog in the 2013
smartphone arena.

The main feature that’ll determine the iPhone 5 fate will be
the support for 4G LTE, along with some other upgrades, that will make a big
splash this year, guaranteeing its supremacy into 2013. The recently released investors
note by Moskowitz reads: "We think that a combination of revolutionary
hardware enhancements and software-driven services (i.e., Passbook, Maps, and
FaceTime over cellular) stand to reaffirm the iPhone as the leading smartphone
in 2013."

However, J.P. Morgan suggests that the way to the victory
won’t be smooth and Apple may face a couple of bumps in the road. With the slightly
trimmed calendar-year second-quarter sales and earnings estimates for Apple, tough
times are widely expected for hardware vendors.

As for the iPhone sales for the third quarter, the firm has lowered
the figures expectedly, as a slowdown in iPhone sales isn't unusual in the
quarter before the new model release. On the other hand, .P. Morgan has
increased its fourth-quarter sales estimates for the new phone on the basis of anticipated
demand for the iPhone 5.

With that said, Apple may find it essential to rely more on
the iPhone if J.P. Morgan's lower sales anticipations for the iPad and Mac appear
to be precise. Moskowitz added: "Overall, our expectation of stronger
iPhone unit sales and the related mix benefits partially counters our lower
growth assumptions for the iPad and Mac businesses."